14
May
London's prime property market 'well equipped' to withstand
downturn
The chief executive of London Central Portfolio has suggested that
the prime property market in the capital will be more resilient to
the current economic downturn than the mainstream market.
Naomi Heaton gave a number of reasons as to why this would be the
case, including the fact that they are held by long-term owners,
meaning repossessions are "minimal" and "distressed sales are few
and far between".
In addition, she said that because the prime property market in
London is self-regulating, yields are forced up when volumes of
transactions drop, which in turn attracts investors, who "stimulate
capital growth in the longer-term".
"This dynamic makes the market considerably more stable than the
national domestic market," she concluded.
According to a recent study by HBOS, central London has the
greatest concentration of million pound properties in the UK.
